Performance Management Systems
What is a Performance Management System?
Systems that facilitate the attainment of individual and corporate goals. Performance Management systems enable you to track and monitor the performance of individual employees, departments, and the organization overall.
These systems are often based on organizational and job specific competencies which need to be obtained for successful job performance.
The components included in Performance Management systems include:
Customized: Performance management solutions designed to meet your needs
- Lists of Accomplishments
- Goals and Objectives
- Results from 360-Degree Feedback Processes
- Supervisor Ratings
- Individual Development Plans
At HR-Survey, we can combine each of these aspects into a single assessment tool administered at one time or administered over a period of weeks (or months).
The typical steps in the administration of a Performance Management process include:
Multi-Step: The computer handles each step of the process by displaying the appropriate parts of the on-line form based on the step in the process and the person completing the form.
Step 1: Employee Self-Assessment
During this step, the employee will enter their goals, objectives, accomplishments, and self-assessment responses (if a 360-Degree feedback process is included). This information is initially created by the employee. Once entered online, the form is then sent to the manager with this information already supplied by the employee.
Step 1a: (optional) Feedback from Peers and Direct Reports
Performance management processes may include 360-Degree Feedback as well to provide additional input into the employee's job performance. This feedback would be included with information submitted to the manager for their review.
Step 2: Initial Manager Assessment
The manager is able to review the statements made by the employee. The manager uses this information to determine the ratings on a variety of measures of job performance. If a 360-degree feedback process is included, the manager would have the opportunity to complete that assessment as part of their review form. The manager completes the form by making a final overall rating of the employee. The form is then sent back to the employee for any additional/follow-up comments.
Step 3: Employee Reviews the ratings from the Manager and enters final comments
The employee has the opportunity to review the manager's assessment. The employee is then given the opportunity to add any final comments to the assessment form. The form is then sent back to the manager for their final comments.
Step 4: Manager Adds Final Comments
The manager has the opportunity to review the final comments by the employee and add a final comment from the manager's perspective. At this point, the form is either printed and signed or it is sent to the SVP or HR department for their reviews.
Step 5: (optional) Review by the SVP or HR
Some performance assessment systems may require reviews of the assessments by the SVP or HR department.
Effective Performance Management Systems:
- Are fair, consistent, and reliable
- Use established performance measures
- Supported by managers and executives
- Communicates performance expectations regularly
- Hold employees accountable for their actions
- Promotes continuous employee development
- Are flexible and efficient
- Aligns individual goals to the department and organization
- Seek to maximize employee performance
- Can be used for succession planning
- Links performance to compensation, rewards, and recognition
What are the responsibilities of the employees?
- Seek constructive feedback from others
- Engage in professional development activities
- Keep track of their performance throughout the year
- Conduct self-assessment
- Participate in an Individual Development Plan
- Develop effevtive and challenging goals
What are the responsibilities of managers/supervisors?
- Review the employee's performance in a timely manner
- Hold employees accountable for completing the process on time
- Provide feedback to the employee
- Recognize employees for their contributions
- Ensure rewards are fair
Effective Goals are (SMART):
How are Performance Management Processes used?
These processes are often administered on an annual basis. They can be administered as frequently as every 3 months (quarterly). The process is driven by documents such as Job Descriptions, position requirements, department goals and objectives. Performance measures such as units/costs/errors/productivity can be used for determining acceptable levels of job performance.
These processes can be used to determine compensation such as bonus/merit pay, variable pay, and/or pay raises. These processes can be used to reward and recognize employees for outstanding job performance.
The process of performance management can be easily administered through cloud-based forms and databases. Not just in monitoring performance, but also in keeping track of measures, goals, and objectives. Also, cloud services are instrumental in gathering and collating information from a variety of sources. For example, the Performance Management Process may use information from individual job descriptions as criteria, combined input from 360-Degree Feedback surveys, and a Supervisor Appraisal form. These varied sources are all computer based and the Performance Management System can help collate and organize that information.
Performance Management Process
- Incorporates Criteria from Job Descriptions
- Includes various measures of performance
- Includes Self-Assessment
- Includes feedback from Peers and Direct Reports
- May require review by senior leadership and/or HR
- Conducted Annually, quarterly, or may have components throughout the year
- Uses objective measurable criteria
Traditional Performance Appraisal
- Administered by Supervisor
- Standard Form that is common to all employees
- Does not require review by others
- Conducted annually
- Criteria for evaluation may not match the employee's actual job duties or description
- Criteria for evaluation may be vague and subject to interpretation and subjectivity
Objective: Performance Management Systems use objective and measurable criteria for assessing employee performance. Criteria that is specific to the individual being assessed.
Individual Performance vs Organizational Performance
With Performance Management Systems, an individual's job performance criteria may also include organizational performance measures. The organization's goals become part of the requirements for individual employees. Employees that achieve these goals are rewarded with positive reviews.
Incorporating 360-Degree Feedback into the process
In assessing an employee's performance, supervisors and managers may find it useful to consider the opinions of this person's peers and/or direct reports. Supervisors and managers could try to collect this feedback on their own by soliciting comments from others who work with this individual. It is possible, however, to incorporate the results of a 360-degree feedback survey directly into the Performance Management Process. This 360-degree feedback can include quantitative as well as text based feedback to help the supervisor get a better picture of the employee's job performance within the organization.